Liability insurance question?

Discussion in 'Business Operations' started by J Hardy, Apr 6, 2005.

  1. J Hardy

    J Hardy LawnSite Member
    Posts: 1

    I'm adding several new customers this year. Past 2 years have been mowing for neighbors and family. Is $100,000 enough for liability insurance, or should I get a higher policy? I mow strickly residential, no commercial property,on a part-time basis. Trying to have around 20 customers.
     
  2. marko

    marko LawnSite Senior Member
    Posts: 963

    That is probably best answered by your accountant and the assets you have to protect. I would venture that most legit on here have at a minimum $500,000 up to a million to start. On my truck, I got several amounts to compare. There was no difference in premium on $300,000 to $500,000 and about $100 to go up to a million. Your business insurance will be based on years experience and payroll. Shop around and look at some of the independent agents. Let them do the shopping around for you.
     
  3. AEW

    AEW LawnSite Member
    Posts: 161

    that would be good...see what your accountant would say. With residentials you should not have too much to worry about and 100000 would probably cover you well...but check with an accountant as well as different insurance agents just to see what they say. Not even all commercials require one million and rarely do residentials care how much you have.
     
  4. Tharrell

    Tharrell LawnSite Silver Member
    Posts: 2,964

    The difference between 100k and 1 mil for me is $28 a year.
     
  5. man of stihl

    man of stihl LawnSite Senior Member
    Posts: 307

    could u guys throw some numbers on me on cost of insurance.. just average costs. i know they arnt going to be exact. i was thinking about gettin insurance... thanx
     
  6. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    You have to be at least 18 years old to get Commercial Insurance.
     
  7. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    $8k.......................................
     
  8. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569


    If you are paying that amount for only commercial liability then either you have horrible, horrible credit or you are getting reamed! I have $5M in coveage and pay $634.00 a year.
     
  9. TJLANDS

    TJLANDS LawnSite Bronze Member
    Posts: 1,669

    New Jersey is very high for com. insurance. Mostly based on payroll but also on total sales. I don't think credit is a factor in com. insurance. My liability insurance of 2mil and an umbrella policy with it costs me over 8k a year. Snowplowing is separate.
     
  10. Tharrell

    Tharrell LawnSite Silver Member
    Posts: 2,964

    I have 1mil with Farm Bureau and it's $25 a year to be a member and under 17k volume is $204 a year. So, it's $229 in all.
     

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